Mary Amiti, Mi Dai, Robert C. Feenstra and John Romalis
NBER Working Paper No. 23487
During the last 20 years China has emerged as the world’s largest exporter, especially due to its rapid export growth following its World Trade Organization (WTO) entry in 2001. Surprisingly little analysis has been made of the potential gains to consumers in the rest of the world, who could benefit from access to cheaper Chinese imports and more important varieties. In this paper Amiti et al. identify that China’s WTO entry reduced U.S. price indexes. Furthermore they quantify how much U.S. consumer welfare improved due to China’s WTO entry.